Sept. 17, 2014 – Milwaukee lawyer Mark Goldstein started his solo law practice in 2008. About two years later, he decided it was time to add an administrative assistant to help him. But the prospect of that expense was scary, Goldstein admits.

“I remember looking at the newspaper on my desk when I opened for business,” Goldstein said. “I thought, ‘how am I going to pay for that?’ Then you start thinking about hiring an employee at $30,000 or more, and that’s overwhelming.”

But hiring an administrative assistant was necessary, Goldstein says, because he was spending too much time on tasks that were not related to his skill set as a lawyer. Goldstein says hiring help can free attorneys to do what they do best: practice law.

“I was spending way too much time on bills, getting correspondence out the door, finalizing documents, postage, and some of the basic marketing stuff,” he says. “I realized I was taking a big loss on my billable rate when spending time on these things.”

When to Hire Staff

When he first started Goldstein Law Group S.C., Goldstein hired outside vendors to help him create the firm’s website, put accounting mechanisms in place, and other crucial systems that helped the law firm create the business infrastructure.

But these were just outside vendors. After a couple years in practice, Goldstein started to track all his activities. He would track how much time he spent on billable legal work, but also marketing, administrative, and other tasks that do not require a law license.

“I started keeping track of my week, and while I knew that I didn’t have to bill 40 hours a week to stay in the business, I was struck by how much of my time was spent on these other activities, and how inefficient it was to be going through all these steps,” he said.

That was the moment Goldstein decided to hire an administrative assistant. Others may spend too much time on marketing, so a marketing specialist would help. And others could consider hiring a paralegal to perform time-consuming research or draft documents.

In other words, if a lawyer is doing tasks that cost $10 to $20 per hour to perform, why not hire help and perform the tasks that pay the lawyer his or her billable rate?

It makes sense from a business perspective, says Goldstein, a recent presenter at State Bar of Wisconsin PINNACLE’s Business School for Lawyers who will also be presenting at the upcoming Wisconsin Solo and Small Firm Conference, Oct. 23-25, at the Kalahari Resort in Wisconsin Dells. 

Goldstein and Madison attorney David Krekeler will focus on adding staff in three preconference sessions on Oct. 23. From the hiring process to delegating work, from staff compensation to evaluation, these preconference sessions should give solo and small firm lawyers the knowledge they need when it comes growing the business with staff assistance.

Goldstein understands the hesitance: salaries can be a big expense, and an employee’s financial well-being is now largely dependent on the law firm’s success. But with the right approach, Goldstein says hiring staff can help the bottom line.

“You just have to look at it differently. In order to meet the firm’s profit goals, everything has to happen at the lawyer’s rates, or the firm will never get there,” he said.

How to Hire Staff

The decision to hire staff person is a big one. The lawyer must define the title and tasks to be performed, interview to find the right person, follow the legal process for hiring, set the expectations of the workplace, and institute a review process.

“There’s a whole range of stuff that you want to handle at the front end in terms of orientation and setting expectations for the first 90 to 180 days,” said Goldstein. Word of mouth is often a good place to start the search for a potential hire, he advises.

Ceate the job description that outlines the tasks to be performed, then tailor any interview process to match the job description, he says. Personality and skills testing can help lawyers narrow down the list of potential candidates, with in-person interviews to help the lawyer maximize the possibilities of a good fit.

“Who fits within what I have created here, what motivates them, how do they work, and what direction do they need from me in order to be as efficient as possible? These are the things lawyers should think about in that interview process,” Goldstein said.

Once the lawyer finds the right person, then what? Goldstein says lawyers often assume they are fully equipped to handle the hiring process, but it can get tricky.

Not only are there legal requirements, such as W-4 and I-9 forms, there’s workplace policies, procedures, and rules that set expectations and direct employees. For instance, how much vacation and sick time is allowed? What are the hours?

The firm must also establish the mechanisms for tracking the employee’s time, payroll, and must properly train the employee on the processes and systems of the firm.

“Lawyers have to convey how this firm operates and what the lawyer expects from the staff person. That may come in the form of a policy or personnel handbook,” said Goldstein. “In addition, the lawyer should institute an employee review process.”

Goldstein says in general, employee reviews are often associated with a yearly determination of whether a raise is warranted. But Goldstein looks at it differently.

“What I propose is doing these quarterly. When you build specific metrics to track for the next 90 days, it helps employees stay efficient,” Goldstein said. “It also presents more opportunities for the employee to have input and offer fresh perspectives or ideas.”

Goldstein says probationary periods or quarterly reviews are especially important at the beginning stages of the employment. “Either they are buying in, and adding some new thoughts, or they don’t get it at all, in which case you know that early on.”

Final Thought: Ethics

The hiring process will be different depending on the type of employee. But whether the potential hire is an associate, a paralegal, a marketing specialist, or an administrative assist, the lawyer should be aware of the ethical rules that apply in certain situations.

For instance, a marketing specialist may not know the advertising rules that apply specifically to lawyers, under the Rules of Professional Conduct for Attorneys. An administrative assistant may not know the importance of communications with clients.

Under Supreme Court Rule (SCR) 20:5.3, “a lawyer having direct supervisory authority over the nonlawyer shall make reasonable efforts to ensure that the person’s conduct is compatible with the professional obligations of the lawyer.”

Lawyers who hire other lawyers also have “supervisor” duties. Under SCR 20:5.1, the supervising or managing attorney “shall make reasonable efforts to ensure that the other lawyer conforms to the Rules of Professional Conduct.”

Hiring staff persons can free the lawyer to be a lawyer, and ultimately improve the firm’s bottom line. But the decision is a big one, Goldstein says, and lawyers should know about the requirements, processes, and rules that will apply when making that decision.